Don't get too invested, but if the market starts to turn positive one or two small positions will not hurt. Leadership has continued to hold up in the face of all the bad news and has now started to tighten up. Make sure to keep stops tight on any new buys just in case the market throws us a head fake. We will continue to monitor the long side until we finally see the leaders breakdown hard. Currently most should still be in cash.
Good Luck
2 comments:
The fact that leadership has held up makes me skeptical that this correction is over. I now see some leading stocks short-term extended. They need to finish their bases, and another leg down in the correction might allow them to do that.
Technically speaking it is a very strong sign considering the NASDAQ corrected 15%.
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